Net Income Equals

question 4

Multiple Choice

Net Income equals

• A) Net Sales - Cost of goods sold - Operating expenses.
• B) Gross Profit - Operating expenses.
• C) Sales - Sales Returns & Allowances - Sales Discount - Cost of goods sold - Operating Expenses.
• D) All of the above are correct.

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Definitions:

Payroll Tax

Assessments required from employers or their employees, usually expressed as a percentage of the remuneration that staff earn.

Federal Income Taxes

Taxes levied by the national government on individual and business earnings.

Married Couple

A legally recognized union between two individuals, typically involving a public declaration of commitment.

Transfer Payments

Payments made by governments to individuals or other sectors in the economy, typically without any goods or services being received in return.